OT - Machine sale resulting in Major Paypal problem today

[Milacron]

I sold a small forklift this week, buyer sent me the sale price of $8,500 today, and to my shock I get a message from PP about only $300 being available right now and the rest in 21 days ! Something about my lack of activity...which is true I suppose since eBay changed over to not using Paypal. If this is not ridiculous enough there is mention of a "release schedule" which implies I might not get paid even after 21 days but they dole out the money over months of time !!

Reading more about it I see there would be less problem if the item was shipping via UPS or USPS but in this case it's brokered freight on flatbed and doesn't fall into Paypal's approved carriers -

PayPal pending or holding funds: funds availability

I've had a business Paypal account and used Paypal literally for over 2 decades now and never had a problem until now. This is a major WTF ? Any ideas ? Any hope of talking to Paypal on the phone ?

(having said all this I'm wondering if maybe the buyer used a credit card via Paypal to pay and they are worried about a chargeback ?)

 

[Milacron]

And below was sent via email.

Some money from your sales is on temporary hold We've placed money on hold because: We need to know more about you and your business, such as sales details and customer service history. You’ll have instant access (within seconds) to the first $300.00 USD from sales each month. All payments received after you reach this amount will be held temporarily and released after the orders are fulfilled. You can easily request that more money is available to you sooner. We'll also periodically adjust this release amount to match your business growth. Here's what you can do to help get your money sooner Provide shipping information Add a valid tracking number and your money will be available 1 day after the carrier reports the shipment has been delivered. Print shipping label Did you know that you can print shipping labels for UPS or USPS with PayPal and the shipment info will be added automatically? Update the status of your service or virtual product sale If your item doesn’t need to be shipped, (e.g., e-ticket or piano lessons) update the order status and your money will be available within 7 days after verification.

 

[boslab]

Now I know what the “changes to your account” email was about, should have read it I suppose, it’s a shitty change so they hold the money and claim the interest for a bet
I spit on PayPal on your behalf, well that went well
Mark

 

[lucky7]

And people wonder why I refuse to use paypal. Sorry you’re in this situation.

I like Peter in Holland’s business terms: stuff doesn’t get shipped till irreversible funds are in his account.

L7

 

[Garwood]

In the past 3 months I've had two Paypal transactions totaling about $25k. Both times they did the 21 days stuff. Niether transaction had shipping involved. Both times I got the funds in 21.5 days. The wording was different though. It stated I WOULD get the money in 21 days. If they said I would be getting a staggered release I'd have said to hell with it.

 

[Milacron]

It stated I WOULD get the money in 21 days. If they said I would be getting a staggered release I'd have said to hell with it.

Yeah that is the most worrisome part. Plus the amount that is "released" in contrast to the total... 300 bucks ?? Paypal is shooting themselves in the ass with this as I will never allow customers to use them again except for maybe under $500 purchases

 

[Milland]

This should only be acceptable if you're paid an agreed-on interest for the excess wait time. Write your congress person (not joking) about this abusive practice.

 

[richard newman]

I had the same sort of thing happen when I started selling rosewood on ebay after a few years absence. 100% perfect feedback, sub $400 transaction, didn't matter at all.

As a seller ebay and paypal suck, but as a buyer I feel pretty safe.

Any good alternatives to Paypal that are trustworthy for both buyer and seller, beside dealing in person with cash?

 

[GregSY]

Just another example of why I refuse to use those jackasses.

Some executive at Paypal (who has never had dirt under his nails) received a very nice bonus for implementing that plan. Does it protect against fraud? Presumably. But given the multitude of channels that exist for fraud protection, that's sort of icing on the cake. What it does do, very efficiently, is fatten Paypal's daily balance for 21 days. Imagine the draw from sitting on someone else's money for 21 days times millions of dollars.

When you use Paypal (or any of those electronic funds services), the key word is 'service'. But don't be mislead....they are not providing you with a service; it's the other way around.

 

[henrya]

You'll need to start using an escrow service and stop using Paypal for anything that is a large amount of money or important. eBay is doing a similar thing where they now send the payment directly to your bank account. Problem is they will send it when they want at any hint of a problem or not. You'd probably be in the same boat with them.

I would definitely look for a well regarded escrow service.

 

[Terry Keeley]

Add Gofundme to list of companies holding funds for no good reason:

Freedom Convoy: GoFundMe seizes funds of Canada '''occupation''' - BBC News

 

[GregSY]

As I wrote above, it is to fatten Paypal's wallet. Nothing more.

 

[72bwhite]

It’s the up dated version of how American Express made a fortune on travelers checks,
Got to pay for those space trips some way you know

 

[Superbowl]

They should offer a way for the buyer to release funds early. For those that think Paypal does this for a big profit, DO THE MATH!!! Banks pay maybe .3% a year if you are lucky. $8,000 X .3% = $24 divided by 365 days = 0.6575 X 21 days = $ 1.38. I don't think they do this for a profit. Likely they use what ever interest is earned to cover the bad deals they have to make good on.

 

[Milland]

Companies like Paypal aren't using banking interest for profit. They're doing short-term stock investments or other "higher risk/profit" vehicles. They've got lots of smart people working on strategies to maximize income from the float.

It's not in bank accounts...

 

[john.k]

There is a reason why these guys have more money than NASA....Incidentally ,banks have been pulling this stunt ever since the moneylenders were driven from the temple.

 

[john.k]

Milland says short term invest.............well ,much better return from loansharking,payday lending,and 25% credit cards......which is where Im thinking their finance licences and banking licences allow them to operate.

 

[cosmos_275]

Any hope of talking to Paypal on the phone ?

I've called them before. Google says (888) 221-1161
I think I called after they pulled the 21 days bs on me a couple years ago. At the time they said the hold would be lifted when my sales got above a certain number. Considering I didn't use it much, that would be never. Person on the phone said they review those things periodically for whatever that's worth. I gave up and just figured anything through them I wouldn't see for a while. It went away eventually. I never hit their annual numbers or whatever metrics it was.

That sucks. I would call up and give them some sort of proof of delivery. It's not your fault a forklift can't fit in a flat rate box.

 

[Bill D]

I read it to say that once delivery is verified you get all the money released in one payment. No idea how long they get to play with the machine to decide if it is as advertized.
Neighbor down the block got a newish Corvette delivered by Carvana flatbed truck. After unloading, it was on the ground for over 30 minutes(while I went out and back). Maybe test driven before the truck left empty.
Bill D

 

[JHOLLAND1]

paypal posturing is right out of playbook of Jack Welch--chairman and ceo of GE and
orchestrator of protracted payout to creditors--GE told vendors do not expect payment from us
until 6 months after we receive your products--and if you need funds to remain viable--
GE Capital will execute a loan @ 12% interest

paypal market cap fell by 50 billion usd 3 days ago--